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£1bn contract for UK nuclear submarines to be announced

17 June 2012 Last updated at 14:02 BST

A £1bn contract for reactors for the next generation of the UK's nuclear-armed submarines is to be announced.

The deal is part of plans to replace the Vanguard fleet, which carries the Trident nuclear deterrent. The work will be carried out at the Rolls-Royce factory at Raynesway, Derby, creating 300 jobs.

Defence Secretary Philip Hammond told the BBC's Sunday Politics show that the government was "committed to maintaining a credible nuclear deterrent". But he said the final decision on replacing Trident would not be made until 2016.

Full interview with Philip Hammond

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